High-tech cars mean high-priced repairs
 

Salesman actually told me to consider not getting headlight/nav packages if I'm going to keep beyond warranty unless I want to buy extended warranty :( Thoughts anyone?

http://articles.moneycentral.msn.com...arRepairs.aspx

High-tech cars mean high-priced repairs

My friend Kerry was proud to be on the cutting edge of hybrid technology when he bought a Toyota Prius a few years ago.

He's less proud to be on the cutting edge of hybrid-technology repairs. He just paid a bundle to replace the car's transaxle, part of the vehicle's new-wave continuously variable transmission, which failed just after the warranty expired.

"The dealer initially told me it would be $3,000 just for the labor, and $5,000 for the part. That's 40% of the original base price of the car!"

Kerry said, "I pushed back and they waived -- miraculously -- the part cost, maybe because we had recently bought a second Prius from them. … But the labor charge remained. Ouch."

Much of today's coolest car technology is expensive upfront and even more expensive to fix. Even the most mundane repair or replacement can cost a small fortune. You easily could shell out $1,000 to replace a key or a side mirror, $2,000 to fix a headlight and thousands more to mend more intricate systems such as adaptive cruise control or a rear-view camera.

"We're just deluged with comfort and convenience items" on new cars, said Jack Nerad, executive editorial director for vehicle-valuation company Kelley Blue Book. "But a lot of the stuff is so complicated (that repairs) can be difficult and expensive."

Just take a look at this price list compiled by the Highway Loss Data Institute to replace some of the gee-whiz parts on certain luxury autos:

2005 Mercedes C Class

Adaptive cruise-control system, which maintains a set distance from the car in front: $3,742
Xenon headlight with washer: $1,659
Parking sensor $345

2005 Lexus RX330

Adaptive headlight with washer: $1,627 per light
Backup camera: $4,217
Adaptive cruise control: $1,318

2005 BMW 5 Series

Adaptive headlight with washer: $2,035
Parking sensor: $372
Adaptive cruise sensor: $2,222

2004 Cadillac Escalade

Ultrasonic rear-parking assist: $934
Xenon headlight: $765
Heated side mirror with turn indicator: $997

Remember, this is just cost of the parts. Labor's extra. And the list doesn't touch some of the most popular technology, like global-positioning systems, headset-mounted DVD players and built-in, hands-free calling systems.

The $1 key becomes the $1,000 key
Technology has even transformed one of my most deeply ingrained habits: losing keys. I made copies by the dozen for our old Ford Explorer, never paying more than a buck apiece at a local hardware store. My husband curtly informed me that I will have to reform when it comes to our Volvo, whose keyless entry fob costs a cool $350 to replace.

That's cheap compared to replacing a keyless ignition device. Nerad's got one of those because he's testing a $103,000 Mercedes-Benz that recognizes the key fob he carries in his pocket. Should he lose it, a replacement would cost about $1,000.

Then there are hybrid technologies. The transmission, batteries and braking systems are costly to replace, and the number of mechanics qualified to work on hybrids is limited. The potential costs aren't lost on consumers: a recent Edmunds.com poll found that 44% of those surveyed were "extremely concerned" hybrids would be expensive to fix.

Of course, auto repairs in general have become more expensive as manufacturers computerize more systems, incorporate expensive lightweight materials and experiment with new designs. The cost of the average repair has risen more than 60% since 1992, the Highway Loss Data Institute says, outpacing inflation. (MSN Autos offers a look at problem areas and repair costs for most used models here.) The average repair bill for the first half of 2005 was $3,912, according to the institute.

But the high cost of replacing electronics and other cutting-edge technology is what often sideswipes drivers, car experts say. Big bills from relatively small components also increase the likelihood that an insurer will declare a car totaled after a collision because the damage is too expensive to fix.

And speaking of insurance, expect to pay more for that, too.

"We have all this wonderful technology making cars safer," said Candysse Miller, executive director of the Insurance Information Network of California and a car buff who drives an Audi S4. "But if it's more expensive to repair, it's more expensive to insure."

Insurance rates can also be affected by the fact that certain items -- think xenon headlights and airbags -- are the favorite targets of thieves.

The smart approach
Does that mean you should opt for an old beater without any of today's safety or convenience features? Not at all. But go in with your eyes open:
Scan the reviews, recalls and technical service bulletins. Some research up front can help you steer clear of the most problematic cars and technologies. The number and type of recalls and technical-service bulletins (TSBs), which are a kind of early warning system for mechanics, can be particularly informative, says Philip Reed, consumer advice editor for Edmunds.com.

"You can pull up two cars and compare them and you might see one has no recalls and no technical-service bulletins, while the other has three recalls and 15 TSBs," says Reed, whose site lists recalls and TSBs for most model years. "We find that problems surface in the first 36,000 miles. Cars are either really solid early on, or the ones with problems" become obvious.

Consider extended warranties. On many consumer products, extended warranties are a rip-off designed to pad sellers' profit. On vehicles loaded with new technology, though, they might be a worthwhile investment if you plan to own the car for longer than the standard warranty or if you're buying it used. Look for the manufacturer's warranties rather than those offered by third parties, "which have a bad habit of disappearing," noted Kelley Blue Book's Nerad. You typically can buy an extended warranty any time before the standard warranty expires, so take some time to shop around for a good price.

Invoke lemon laws. If you have a new car that's spending more time in the shop than on the road, study your state's lemon law (Find a link to your state's legislation at the Center for Auto Safety). The laws typically cover new cars for the first 18 to 24 months and outline remedies for vehicles with persistent problems. Let the dealership know you're considering invoking the law. Reed says many reputable dealers will buy a new car back or terminate a lease to avoid lemon-law problems.

"Rather than have the black mark, they'll take it back," Reed said.

Don't buy a champagne car on a beer budget. This should be obvious, but it's a bad idea to buy a car bristling with new technology unless you've got some money to burn. More modestly priced cars will almost certainly be cheaper to maintain, repair and insure. Besides, yesterday's luxury technology often winds up as tomorrow's standard equipment, so if you wait long enough you may be able to get the space-age goodies on a mid-priced car. Multiple airbags, CD/MP3 players and heated seats were specialty items a decade ago but now are commonplace on even some of the cheapest cars.

That is assuming that you are unlucky enough to have the special technology die on you within the time you own the car. Do you plan on keeping the car for life? If so, just realize that things will konk out in time, whether it's something simple like the A/C or power windows, to the nav system and engine itself.

And that's odd that the salesman is trying to not sell you the packages. That's extra $$ for the dealership, unless if they are trying to get rid of a base car that no one wants.

Hopefully, you can get a car that you want, rather than worrying about what will happen to the car after the warranty expires. Get what you want for now, and worry about the small stuff later.

Good luck!

which is why im going to opt for an extended warranty, and not get these gimmicks like navigation systems, adaptive cruise control, back up camera, parking assist

While I always think I'm going to keep a car forever I usually find we are trading before the extended warranty expires. So this time we skipped the extended warranty with the full intention of just trading it in if things start to go wrong. We love the high tech comfort and toys and at some point in life you have to remind yourself you are worth it and enjoy the good things.

" you have to remind yourself you are worth it and enjoy the good things"

Great attitude, within the budget one has, obviously :)

There's a lot of truth to that...
 

I'm a salesman (Medical) and I have to agree with a lot of what she tells you. The bells and whistles are wonderful within reason, but they can many times turn a reasonably priced car into an overpriced car. Xenon headlights are cool, but honestly, if they didn't come with the Infiniti I chose I could have easily lived without them. I also think that factory NAV's are cool, and not to knock those of you who have them, but the aftermarket NAV's make a Hell of a lot more sense for the average consumer. They can be had for well under $1000, perform at 90% of the functionality of a factory NAV, and best of all they can be switiched between family cars and taken with you on vacation. Things like adaptive cruise control, ventilated seats, upgraded leather, On-star, rear-view monitor, and heated steering wheels are features that most of us don't need.

Don't get me wrong, I like creature comforts as much as the next guy and will probably purchase an ES 350 with the premium package. With that said, I could (and maybe should) just as easily live comfortably with the new Toyota Avalon or even a Camry. When you think about it, some of the features available in vehicles today are pretty silly.

The portability of aftermarket is a 'good' selling point, but I would still get a factory one if it was available. I have a portable and over time, it does become a hassle to lug the thing around and pack it away every single time you leave the car. If you don't pack it, you're afraid it will be stolen, so you pack it away every time. Also, a portable NAV only helps if you remember to bring it with you. I've had times where I've just gone out knowing I won't go anywhere far, but then there's either traffic or detour somewhere along the way. With a factory installed, the NAV is always there.

If ypu are so forgettful you could buy one each for every car and still be better off. And updates are a fraction of the factory NAV. Some portable ones have better features too!!

That does make a lot of sense. On the other hand, it seems a shame to buy a $35k-45k (or more in non ES models) and then put an aftermarket NAV on the dash, window, etc. I guess if you went with an in dash variety and swapped out the radio, it wouldn't look as bad.

You should also adjust for inflation. I did so on base ES MSRP price from equivilant models since the 1990 ES250. It was quite entertesting to see.